National Payment Gateway could burden banks, consumers

1 min readUpdated Jun 4, 2025May 11, 201811:12 PM

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The National Payment Gateway (GPN) may burden both consumers and banks as Bank Indonesia (BI) requires all bank customers to have at least one GPN card, the University of Indonesia’s Institute for Economic and Social Research (LPEM UI) has said.

LPEM UI researcher Chaikal Nuryakin said on Wednesday that based on BI’s target, following the issuance of Article 43 of BI Regulation No. 19/10/PADG/2017, 100 million GPN cards needed to be issued.

“The problem is that the GPN cards cannot be used for transactions abroad. Some customers will have it but they leave it dormant while the administration cost will be incurred,” he said during a press conference in Jakarta.

LPEM UI’s study found that at least 22.5 million cards out of 100 million would be dormant and that it would cost banks Rp 585 billion (US$41.54 million) to issue the 22.5 million cards.

“It would be better if BI loosened the regulation so that GPN cards were optional. So it is up to customers whether or not they want to have it,” Chaikal said.

This was because GPN cards could only be used for domestic transactions and could not be embedded with foreign switching companies such as Visa and Mastercard, he added.

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What this means

Bank Indonesia's mandatory GPN card issuance for all customers is a misstep, likely creating significant administrative burden and consumer dissatisfaction. Unlike Apple's strategic $1 billion investment in Indonesian manufacturing or the targeted expansion of brands like Miniso, this policy imposes a costly, limited-use product on millions. The inability to use GPN cards abroad renders them inferior to existing foreign-linked options for many, pressuring banks with Rp 585 billion in estimated issuance costs for dormant accounts. This move risks alienating consumers and undermining financial efficiency in an attempt to nationalise payments. The real test will be the actual dormancy rate and consumer uptake by the mandated issuance target.

Minjun Park · Retail News Asia newsroom

Questions & Answers

What is the primary concern raised about the National Payment Gateway?

The main concern is that GPN cards may burden both consumers and banks, as many cards could be dormant while still incurring administration costs.

How many GPN cards is Bank Indonesia targeting for issuance?

Bank Indonesia has set a target for 100 million GPN cards to be issued, as outlined in Article 43 of BI Regulation No. 19/10/PADG/2017.

Why might some GPN cards become dormant according to the study?

GPN cards can only be used for domestic transactions and cannot be used abroad, nor can they be embedded with foreign switching companies like Visa or Mastercard.

What financial impact could dormant GPN cards have on banks?

The study found that 22.5 million dormant cards would cost banks Rp 585 billion (US$41.54 million) to issue.

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